Strange Corporation purchased $60,400 of 6-year, 7% bonds of Kaecilius Inc. for $57,566 to yield an 8% return, and classified the purchase as an amortized cost method investment. The bonds pay interest semi-annually.

Assuming Strange Corporation applies ASPE and has chosen the straight - line method of discount amortization, prepare its journal entries for

a) the purchase of the investment

b) receipt of semi-annual interest

c) Discount amortization for the first two interest payments that will be recieved